Should My Child Get Their Inheritance?

What if your 18-year-old suddenly inherited your $200,000?

Would they invest it? Buy their first home? Start a business?

Or would they buy a red Corvette, take an expensive vacation with their friends, and wonder where the money went a few years later?

Most parents laugh when I ask this question. Because they already know the answer. It’s one of the most common conversations we have during estate planning. Not whether their children should inherit…

But when.

Every Parent Says the Same Thing

I’ve never had a parent tell me,

“I want my 18-year-old to inherit everything outright.”

Instead, I hear questions like: “Would 25 be better?” “Maybe 30?” “What do most people choose?”

The truth is, there isn’t one right answer. Every child is different. Every family is different. The goal is to choose an age that reflects your child’s maturity, financial responsibility, and your family’s values.

A Conversation I’ll Never Forget

A husband and wife came into my office to create their estate plan. When we discussed their children’s inheritance, they quickly agreed.

“Let’s have them inherit everything at age 30.”

I asked why. They smiled. “Hopefully they’ll have life figured out by then.”

Then I asked one more question.

“What happens if your son is 42 and gets sued?” Silence.

“What if your daughter gets divorced at 45?” They looked at each other.

“We assumed the trust would protect them forever.” It’s a question many parents don’t realize they should be asking.

Beyond Choosing an Age

For many families, staggered distributions make perfect sense. Maybe one-third at age 25. Another portion at 30. The balance at 35.

For other families, we discuss whether it makes sense to continue some or all of the inheritance in a protective trust even after a child reaches adulthood. Neither approach is right for everyone. The important thing is understanding that you have options.

Many estate plans distribute everything outright once a child reaches a certain age. After that, the inheritance may no longer have the same level of protection from things like divorce, lawsuits, creditors, or bankruptcy. For some families, that’s perfectly appropriate. For others, continuing certain protections may better accomplish their goals.

The Better Question

Instead of asking,

“What age should my children inherit?”

Consider asking,

“What level of protection do I want my children to have throughout their lives?”

The answer might be age 25. It might be age 30. It might be age 35.

Or it might include additional long-term wealth protections. The right answer isn’t based on what everyone else does. It’s based on what’s right for your family.